14 February 2022

On 10 February 2022, the Treasury Laws Amendment (Enhancing Superannuation Outcomes For Australians and Helping Australian Businesses Invest) Bill 2021 was passed by both houses and awaits Royal Assent.

The measures include:

  • the introduction of a work test for individuals aged 67-75 to claim a tax deduction for personal contributions, starting in the 2022-23 income year. This work test is similar to the current work test relating to the acceptance of contributions, that is, the individual must be gainfully employed for at least 40 hours in any 30 consecutive day period during the income year in which the contribution is made.

    The explanatory material to the Bill noted the intention to remove the work test relating to the acceptance of contributions (e.g. non-concessional and salary sacrifice) from superannuation law, starting in the 2022-23 financial year. Legislation to make this change is yet to be registered.
  • increasing the eligibility age to utilise the bring forward rule from under age 67 to age 74 (inclusive), starting in the 2022-23 financial year.
  • reducing the eligibility age to make downsizer contributions from age 65 to age 60, starting in the 2022-23 financial year.
  • the removal of the monthly minimum threshold (currently $450 a month) for salary or wages to count towards the superannuation guarantee, starting from 1 July 2022.
  • increasing the maximum releasable amount under the First Home Super Saver Scheme from $30,000 to $50,000, starting in the 2022-23 financial year.
  • allowing trustees to choose their preferred method for calculating exempt current pension income where the fund has member interests in both accumulation and retirement phase for part of the financial year. This measure will apply from the 2021-22 financial year, and
  • extending the temporary full expensing of depreciating assets regime by 12 months to 30 June 2023. This extension will provide eligible business an additional 12 months to access the tax incentives.

Additional information

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